Condor Completes TEA Work and Secures Full Ownership of TEA 86

Technical Evaluation Completion and Resource Upgrade

Condor Energy (ASX:CND) has wrapped up its Technical Evaluation Agreement (TEA) work programme for TEA 86 in Peru's offshore Tumbes Basin ahead of schedule, delivering a robust technical foundation for future exploration. The integrated studies, including seismic reprocessing and petroleum systems modelling, confirmed an active petroleum system and identified over 20 exploration leads, boosting confidence in the basin's hydrocarbon potential.

This technical milestone coincides with Condor consolidating 100% ownership of TEA 86 after acquiring Jaguar Exploration's stake, simplifying the ownership structure and lifting its net attributable prospective oil resources to over 3.3 billion barrels (2U) and contingent gas resources to 1 trillion cubic feet (2C). This sizeable resource base underpins the company's strategic ambitions for the area.

Licence Contract Application Sets Stage for Development

Following the TEA completion, Condor submitted its application to Perupetro to convert TEA 86 into an Exploration and Exploitation Licence Contract. This transition is critical, as it grants long-term tenure necessary for advancing exploration drilling, appraisal, and commercialisation efforts.

The licence conversion also marks Condor's shift from technical evaluation to active operatorship, enabling it to engage more flexibly with strategic partners and potential financiers. The company continues to progress discussions with industry participants who are conducting due diligence via Condor's virtual data room, indicating ongoing interest in the offshore Peru portfolio.

Gas Commercialisation and Strategic Partnerships

Condor is actively pursuing commercialisation of its Piedra Redonda gas discovery, which holds contingent resources of 1 Tcf. Management's recent visits to Peru and Ecuador facilitated meetings with government bodies, prospective gas customers, and partners to advance these efforts alongside the licence application.

These parallel workstreams demonstrate Condor's integrated approach to unlocking value from both oil exploration prospects and gas commercialisation opportunities within TEA 86.

Capital Raising and Board Strengthening

To support its next phase, Condor successfully raised A$2.25 million through a placement, attracting institutional and sophisticated investors. The funds are earmarked for licence conversion, strategic partnering, and further technical work.

In a bid to bolster its leadership, Condor appointed Dr Julian Fowles as a Non-Executive Director effective 1 July 2026. Dr Fowles brings over 35 years of oil and gas experience, including executive roles in South America, which should enhance Condor's strategic and operational capabilities as it advances its offshore portfolio.

Financial Position and Outlook

Condor ended the quarter with A$3.39 million in cash, supported by the recent capital raise. Operating and exploration expenditures remain modest, reflecting a disciplined approach during this evaluation and licence conversion phase.

The company’s clear focus on securing the Licence Contract, progressing strategic partnerships, and advancing gas commercialisation positions it to move from evaluation to development, though timing and regulatory approvals remain key variables.